HYPO ALPE-ADRIA: EC OKs Austria's Plan to Sell Parts of Business----------------------------------------------------------------BNA reports that the European Commission approved on Sept. 3 theAustrian government's plan to sell off parts of the bankruptAustrian bank, Hypo Group Alpe Adria, and wind down the rest ofthe group.

The decision puts an end to the longest-running state aid case inthe European Union with origins in the financial crisis thatstarted in 2008, Bloomberg notes.

The commission and the Austrian government have wrangled foryears over how the bank should be cleaned up after it was firstrescued in 2008 and then nationalized completely in 2009,Bloomberg recounts. According to Bloomberg, the commission'sSept. 3 approval was conditional on Hypo selling its Balkanbanking network by June 30, 2015, at the latest.

The winding-down process has started in several countries, bothin the Balkans and in Italy, Bloomberg states.

Until the sales are completed, the banking group is subject toseveral restrictions for new business, "in particular relating torisk control, thus ensuring that the marketability of thesubsidiaries is enhanced and that competition distortions arekept to a minimum," Bloomberg quotes the commission as saying ina statement.

The commission decision cleared past and future Austrian stateaid to the banking group, Bloomberg notes. The commission, ascited by Bloomberg, said that in the past, the bank receivedEUR2.85 billion (US$3.75 billion) in capital or capitalguarantees, EUR300 million (US$395 million) in guarantees onassets and EUR1.35 billion (US$1.78 billion) in refinancingguarantees. However, the commission declined to say what futurestate aid may amount to under the plan, Bloomberg notes.

The commission said that at the end of 2012, Hypo Group AlpeAdria had an overall balance sheet of EUR33.8 billion andrisk-weighted assets of about EUR21 billion, Bloomberg relates.

Hypo Alpe-Adria International AG is a subsidiary of BayernLB. Itis active in banking and leasing. In banking, HGAA serves bothcorporate and retail customers and offers services ranging fromtraditional lending through savings and deposits to complexinvestment products and asset management services.

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CROATIA AIRLINES: Croatia to Open Tender by September 15--------------------------------------------------------Jasmina Kuzmanovic at Bloomberg News reports that Croatia willopen a tender to sell unprofitable Croatia Airlines d.d. bySept. 15 and plans to pick a winner by year's end frominternational bidders from as faraway as Asia.

According to Bloomberg, Croatian Transport Minister Sinisa HajdasDoncic said in an interview on Tuesday in Zagreb that thegovernment may either offer existing state shares, limitingownership to 49% for buyers outside the European Union, or sellnew stock by raising the carrier's capital.

The ministry estimates the airline to be worth about HRK350million (US$61 million), Bloomberg discloses.

"The interest is big as companies from Turkey to China haveexpressed interest, and we expect to pick a partner by the year'send," Bloomberg quotes Mr. Hajdas Doncic as saying. He said thata call for non-binding bids will come a later date, Bloombergnotes.

Zagreb-based Croatia Airlines was founded in 1990 as the formerYugoslavia was breaking apart, Bloomberg recounts. Its routesare limited to European cities, with code-sharing agreements tofour U.S. destinations, Bloomberg states. The company posted anet loss of HRK475 million in 2012, Bloomberg relates.

Croatia Airlines d.d. is the national airline and flag carrier ofthe Republic of Croatia.

At the same time, S&P removed the ratings on the senior unsecurednotes from CreditWatch, where they were placed with positiveimplications on July 31, 2013. In addition, S&P raised therecovery ratings on these notes to '5' from '6', indicating itsview of modest (10%-30%) recovery prospects for noteholders inthe event of a payment default.

RATIONALE

The rating action reflects S&P's view that the recovery prospectsfor the notes' holders have improved, following the repayment ofUS$500 million of first-lien debt, which ranked ahead of thesenior unsecured notes. S&P understands that the repayment ofits US$500 million asset sale facility, maturing in 2016, wasfacilitated by the successful issuance of US$500 million 8.875%unsecured notes due 2020. Furthermore, S&P has incorporated therepricing of the group's remaining first-lien debt facilitiesinto its recovery analysis.

RECOVERY ANALYSIS

To determine recoveries, S&P simulates a hypothetical defaultscenario. In this scenario, S&P assumes that the group uses itscash balances to offset high operating losses in a continuallyweak operating environment. Such weakness is reflected in theconstrained capital expenditure budgets of telecoms carriers andincreased competition among telecom network equipment providers.In addition, S&P assumes that Alcatel-Lucent's research anddevelopment costs remain significant, as it continues to developproducts to remain competitive. S&P also assumes that the groupwill not make asset disposals or realize meaningful proceeds fromits patent portfolio to repay the senior secured facilities. S&Pbelieves that under these circumstances, the group could file forbankruptcy in 2015, to facilitate restructuring while it stillhas meaningful cash on its balance sheet.

S&P estimates the group's stressed enterprise value at thehypothetical point of default in 2015 at about EUR3.3 billion.S&P deducts about EUR300 million of enforcement costs and aboutEUR980 million of priority liabilities, predominately related todiscounted receivables of approximately EUR750 million. Thisleaves a net value of about EUR2 billion for lenders. S&Penvisages EUR1.7 billion of senior secured debt outstanding atdefault, including six months' prepetition interest. S&P do notassume any additional repayments from asset disposals. S&P alsoassumes that about EUR2.9 billion of senior unsecured notes wouldbe outstanding at its hypothetical point of default. S&P seessufficient value remaining for senior unsecured noteholders tosecure a "modest" (10%-30%) recovery.

Although S&P values Alcatel-Lucent as a going concern, it do notsee a meaningful difference in recovery prospects when using adiscrete asset valuation.

At the same time, the issue ratings on CGG's unsecured notes,including US$350 million (outstanding US$225 million) 9.5% notesdue 2016, US$400 million 7.75% callable notes due 2017, and $650million 6.5% notes due 2021, are unchanged at 'BB-', and S&P islowering the recovery rating on them to '4' from '3'.

S&P is also affirming its 'BB-' long-term corporate credit ratingon CGG. The outlook is stable.

The ratings reflect S&P's assessment of the group's business riskprofile as "weak" financial risk profile as "aggressive."

Key business risk factors include the intense and competitivenature of the seismic industry, which S&P views as highlycyclical, notably in the capital-intensive offshore marinesegment. This results in highly volatile profit generation. Keybusiness strengths include CGG's leading global position, and thediversity coming from its exposure to land, marine, and imagingseismic services, and seismic equipment manufacturing.

On the back of S&P's assumption that industry conditions willimprove in the next few quarters, S&P believes that CGG willachieve funds from operations (FFO) to debt of 20%-22% and debtto Standard & Poor's-adjusted EBITDA of between 3.4x-3.8x in2013, which it believes to be commensurate with the currentrating. S&P notes, however, that these credit metrics are at thelower end of its guidance for the rating, taking intoconsideration the high volatility of cash flows inherent in theindustry.

S&P anticipates that unadjusted debt will remain high in 2013 atabout US$2.5 billion (its adjustments include about US$0.9billion related to operating leases and pensions). S&P forecaststhat annual investments will increase to about US$850 million in2013 and 2014, with both multi-client and industrial capitalexpenditure (capex) above US$400 million for the next couple ofyears.

S&P expects no major changes in free operating cash flow (FOCF)in the next few years, however, due to high investment levels anddespite its expectations that operating performance will improve.S&P anticipates that FOCF will remain modestly positive in 2013and 2014, resulting in limited deleveraging capacities.

The outlook is stable, reflecting S&P's view that credit metricsin 2013 and 2014 will be consistent with its guidance for theratings, that is FFO/debt of between 20% and 30% and debt/EBITDAbetween 3x-4x. Despite S&P's anticipation that CGG's performancein the second half of 2013 will be stronger than in the firsthalf, it notes, however, that the company should be at the lowend of these ranges and will have limited headroom to deviatefrom its base-case scenario. This assumes that CGG will be ableto generate moderate positive FOCF and that liquidity will be atleast "adequate."

S&P might consider a negative rating action if FFO to debt fellbelow 20%, debt to EBITDA rose above 4x, or if FOCF turnednegative. This could come from unfavorable developments in theseismic market or operational issues, for example. S&P couldlower the rating if CGG's already substantial debt increasedfurther as a result of substantial new vessel orders.

The likelihood of a positive rating action is remote, as it wouldrequire significant debt reduction and improved FOCF, which S&Pdo not anticipate in its base-case scenario.

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Q-CELLS SE: Creditors Approve Insolvency Plan---------------------------------------------Sandra Enkhardt and Shamsiah Ali-Oettinger at pv-magazine.comreports that the creditors of Q-Cells SE, now renamed Global PVQSE, have approved with a majority the procedural insolvency plansubmitted by insolvency administrator Henning Schorisch. Thereport notes that the first payout rate for this year has beenset at 8.5%. The process should hence be concluded by end of2015. The business and the brand Q-Cells had already been takenover by the Korean company Hanwha Chemicals last year, the reportrelates.

According to the report, the creditors of Global PVQ SE, foundedafter the sale of the Q-Cells brand and the business operationsto Hanwha Chemicals, have now approved the bankruptcy plan with alarge majority. Hence it is expected that the company will have afaster payout rate, Mr. Schorisch. The insolvency plan stipulatesthat this year the payout rate will be 8.5%. "The rate will reacha total high that is well above the average in German insolvencyproceedings," Schorisch explained. Hence the process can becompleted as quickly as possible. Schorisch expects it to takeabout three years. The norm is ten years.

pv-magazine.com relates that most of Global PVQ SE's assets havebeen liquidated with the transfer to Hanwha Q.Cells GmbH. Thepurchase price that was paid by Hanwha Chemicals is now part ofthe funds available for payout. Liquidation of the remainingassets, for instance remaining properties or corporateinvestments, and the realisation of a number of claims areexpected to take several years to complete. These will then alsobe distributed to the creditors at the end of the process.

pv-magazine.com says Mr. Schorisch also presented the preliminaryinterim status of the debt. The updated opening statement as ofJune 30, 2013, lists total assets amounting to about EUR286million compared to EUR371 million in the opening statement as ofJuly 1, 2012, the report relays. Cash and liquid funds stand atabout EUR211.5 million from the previous EUR139 million thanks tothe liquidation measures undertaken. With regards to liabilities,insolvency claims have been reduced to about EUR1.6 billion fromEUR1.9 billion. Liabilities to preferential creditors amount toEUR50 million, almost half of what it used to be.

Q-Cells SE is a German solar-panel maker. In April 2012, Q-Cellsfiled a request to open insolvency proceedings at the competentDistrict Court in Dessau. The competent Insolvency Court inDessau has appointed Mr. Henning Schorisch, hww wienberg wilhelmInsolvenzverwalter, Halle/Saale, as preliminary insolvencyadministrator.

REUTAX AG: U.S. Court Issues TRO, Ch. 15 Hearing on Sept. 4-----------------------------------------------------------Judge Mary F. Walrath of the U.S. Bankruptcy Court for theDistrict of Delaware issued a temporary restraining order to aidthe orderly determination of claims and the fair distribution ofassets in the insolvency proceeding of Reutax AG under the GermanInsolvency Code, pending before the lower court of Heidelberg, inGermany, File No. 51 IE 2/13.

Judge Walrath will convene a hearing on Sept. 4, 2013, at 12:00p.m., for parties to show cause why a provisional order shouldnot be granted and thereby extending the stay relief granted bythe TRO.

About Reutax AG

Reutax began German bankruptcy proceedings in March and founderSoheyl Ghaemian, who resigned soon after, was arrested in Germanyin June on charges of fraud, embezzlement and breach of fiduciaryduties, according to court documents, the report related.

Heidelberg, Germany-based Reutax AG provides informationtechnology services to clients, using free-lance informationtechnology experts. The Debtor was 60% owned by Contreg AG, anentity owned by the Debtor's founder, Soheyl Ghaemian. Hans-Peter Wild, through an entity called Casun Invest AG, held a 40%equity stake in exchange for a US$40 million investment. Facedwith a liquidity squeeze, as well as EUR10 million in liabilitiesto its IT consultants, the Debtor halted operations and onMarch 20, 2013, filed a petition to open insolvency proceedingsover its assets.

Tobias Wahl was appointed the insolvency administrator in June2013. He filed a Chapter 15 petition for Reutax (Bankr. D. Del.Case No. 13-12135) on Aug. 21, 2013. The Debtor is estimated tohave assets and debt of US$10 million to US$50 million.

ACORN CORPORATE: Placed Into Voluntary Liquidation--------------------------------------------------Ray Managh at Irish Examiner reports that the man who promotedhimself as the "financial doctor who engineers successfuloutcomes to difficult financial situations" is liquidating hiscompany, the High Court heard on August 30.

According to Irish Examiner, Barrister Mark O'Mahony told JudgeMcDermott that he represented the Collector General, MichaelGladney, who had brought a petition to court for the winding-upof Mr. Culligan's company.

"We do not now need to go ahead with that petition since thecompany went into voluntary liquidation on August 30," the reportquotes Mr. O'Mahony as saying.

Documents showed that Acorn Corporate Services owed the CollectorGeneral more than EUR152,000 in unpaid VAT and PAYE/PRSI taxes,the report notes.

Irish Examiner relates that Mr. Gladney, Sarsfield House, FrancisSt, Limerick, said the company, registered at An Leacht,Memberton, Whitegate, Co Cork, had been served with a demand forthe tax arrears last March but they had not been paid.

He said the company was unable to pay its debts and should bewound up, the report relays.

Mr. Gladney told the court that Acorn Corporate Services had beenestablished in 2001 as expert consultants to provide financialadvice and management services relating to the organisation ofindustry and business, adds Irish Examiner.

The rating actions follow S&P's assessment of the transaction'sperformance, using data from the June 28, 2013 trustee report,and by applying its relevant criteria.

Since S&P's Feb. 13, 2012 review, it has observed an increase inthe weighted-average spread earned on the collateral pool to4.01% from 3.15%. The transaction's weighted-average life hasincreased to 4.99 years from 4.71 years, over the same period.

S&P has also observed an improvement in the pool's creditquality. The proportion of assets that S&P considers to be ratedin the 'CCC' category ('CCC+', 'CCC', or 'CCC-') and assets thatit considers to be defaulted (assets rated 'CC', 'C', 'SD'[selective default], and 'D') have decreased in notional andpercentage terms.

Currently, the par value tests for all classes of notes arecomplying with the required triggers under the transactiondocuments. As of S&P's February 2012 review, the par value testsfor the class E and F notes were below the required levels. Atthat time, the par value tests for the other classes of notescomplied with the levels required under the transactiondocuments.

S&P has observed a decrease in the available credit enhancementfor all classes of notes. In S&P's view, this is a result of thereduced aggregate collateral balance. The aggregate collateralbalance has decreased to EUR683.614 million fromEUR684.349 million since S&P's February 2012 review. Thisreduction is greater than the partial amortization of the classA1 and A3 notes. Since S&P's 2012 review, the outstandingaggregate balance of the class A1 and A3 notes is 99.97% of itsoriginal balance and their individual balances have decreased byEUR89,616 and EUR37,502, respectively. Interest proceeds wereused to partially amortize the class A1 and A3 notes after thepar value test of the most subordinated class was breached on theMay 2012 payment date.

In S&P's analysis, it has also considered that Avoca CLO VII isstill in its reinvestment period, which will end in May 2014.

S&P has subjected the capital structure to its cash flowanalysis, by applying its 2009 corporate cash flow collateralizeddebt obligation (CDO) criteria, to determine the break-evendefault rate (BDR) at each rating level. S&P used the reportedportfolio balance that it considered to be performing, theprincipal cash balance, the weighted-average spread, and theweighted-average recovery rates that it considered to beappropriate.

S&P incorporated various cash flow stress scenarios, usingvarious default patterns, levels, and timings for each liabilityrating category, in conjunction with different interest ratestress scenarios. To help assess the collateral pool's creditrisk, S&P used CDO Evaluator 6.0.1 to generate scenario defaultrates (SDRs) at each rating level. S&P then compared these SDRswith their respective BDRs.

Taking into account S&P's observations outlined above, itconsiders the available credit enhancement for the class R and Tcombination notes to be commensurate with higher ratings. S&Phas therefore raised to 'BB (sf)' from 'B (sf)' its ratings onclass R and T combination notes. At the same time, S&P considersthe available credit enhancement for the class S combinationnotes to be commensurate with our current 'CCC+ (sf) 'rating.S&P has therefore affirmed its 'CCC+ (sf) 'rating on the class Scombination notes.

S&P's ratings on the class B def, C1 def, C2 def, D1 def, D2 def,E1 def, E2 def, and F def notes are constrained by theapplication of the largest obligor test, a supplemental stresstest that S&P introduced in its 2009 corporate cash flow CDOcriteria. This test addresses event and model risk that might bepresent in the transaction and assesses whether a CDO tranche hassufficient credit enhancement (not including excess spread) towithstand specified combinations of underlying asset defaultsbased on the ratings on the underlying assets, with a flatrecovery of 5%.

Although the results of S&P's cash flow analysis suggest higherratings for these classes of notes, the largest obligor testresults constrain S&P's ratings on the notes. S&P has thereforeaffirmed its 'BB+ (sf)' ratings on the class D1 def and D2 defnotes, its 'CCC+ (sf)' ratings on the class E1 def and E2 defnotes, and its 'CCC- (sf)' rating on the class F. At the sametime, S&P has raised to 'A+ (sf)' from 'A (sf)' its rating on theclass B def notes and to 'BBB+ (sf)' from 'BBB- (sf)' its ratingson the class C1 def and C2 def notes.

Based on S&P's counterparty analysis, it has concluded that thetransaction documents for the derivative counterparties--CitibankN.A. (A/Stable/A-1), JP Morgan Chase Bank N.A. (A+/Stable/A-1),and Credit Suisse International (A/Stable/A-1)--do not fullycomply with S&P's current counterparty criteria. As a result,S&P's current counterparty criteria constrain its maximumpotential ratings in this transaction to one notch above itslong-term issuer credit ratings on the derivative counterparties.However, this does not apply if the available credit enhancementfor the class of notes in question is sufficient to supporthigher ratings, after adjusting the pool balance in accordancewith S&P's current counterparty criteria.

S&P's ratings on the class A1, A2, and A3 notes reflects itsopinion of the available credit enhancement for these classes ofnotes after its adjusted the aggregate pool balance in accordancewith its current counterparty criteria, and conducted its creditand cash flow analysis. In S&P's opinion, the available creditenhancement for the class A1, A2, and A3 notes now supportshigher ratings than previously assigned. S&P has thereforeraised to 'AAA (sf)' from 'AA+ (sf)' its rating on the class A1notes and to 'AA+ (sf)' from 'AA (sf)' its ratings on the classA2 and A3 notes.

Since S&P's previous review of this transaction in February 2012,the class K combination notes have decoupled into their componentparts in April 2012. Therefore, S&P has withdrawn its 'BBB-(sf)' rating on the class K combination notes.

SEC Rule 17g-7 requires an NRSRO, for any report accompanying acredit rating relating to an asset-backed security as defined inthe Rule, to include a description of the representations,warranties and enforcement mechanisms available to investors anda description of how they differ from the representations,warranties and enforcement mechanisms in issuances of similarsecurities. The Rule applies to in-scope securities initiallyrated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Reportincluded in this credit rating report is available at:

S&P's ratings on Avondale Securities' class A-1 and A-2 notes areweak-linked to our long-term rating on BOI due to a supportagreement. This agreement obligates BOI to meet, under certainconditions, payments due on the notes, and potential taxliabilities, as well as its servicing of the policies.

On Jan. 20, 2012, S&P affirmed and removed from CreditWatchnegative its 'BB+' long-term counterparty credit rating on BOI.Due to an error, S&P did not affirm and remove from CreditWatchnegative its ratings on Avondale Securities' class A1 and A2notes following its corresponding rating actions on BOI.

S&P has corrected this error by affirming and removing fromCreditWatch negative its 'BB+ (sf)' ratings on AvondaleSecurities' class A1 and A2 notes, which are now in line with itslong-term rating on BOI.

S&P's ratings also reflect the credit enhancement available tothe rated notes through the subordination of cash flows payableto the subordinated notes. S&P subjected the capital structureto a cash flow analysis to determine the break-even default rate(BDR) for each rated class of notes.

To determine the BDR for each rated class, S&P used the targetpar amount, the covenanted weighted-average spread, thecovenanted weighted-average coupon, and the covenanted weighted-average recovery rates. S&P applied various cash flow stressscenarios, using four different default patterns, in conjunctionwith different interest rate stress scenarios for each liabilityrating category.

S&P's ratings are commensurate with its assessment of availablecredit enhancement following its credit and cash flow analysis.S&P's analysis shows that the available credit enhancement foreach class of notes was sufficient to withstand the defaults thatS&P applied in its supplemental tests (not counting excessspread) outlined in its corporate collateralized debt obligation(CDO) criteria.

Following the application of S&P's nonsovereign ratings criteria,it considers that the transaction's exposure to country risk issufficiently mitigated at the assigned rating levels. This isbecause the concentration of the pool comprising assets incountries rated lower than 'A-' is limited to 10% of theaggregate collateral balance.

The transaction's legal structure is bankruptcy-remote, inaccordance with S&P's European legal criteria.

SEC Rule 17g-7 requires an NRSRO, for any report accompanying acredit rating relating to an asset-backed security as defined inthe Rule, to include a description of the representations,warranties and enforcement mechanisms available to investors anda description of how they differ from the representations,warranties and enforcement mechanisms in issuances of similarsecurities.

The Standard & Poor's 17g-7 Disclosure Report included in thiscredit rating report is available at:

Marfrig's ratings take into consideration the company'saggressive capital structure combined with a challengingoperational environment. The company's operations are exposed tothe volatility of protein prices and profit margins due tofactors beyond the company's control. Positive considerationsinclude Marfrig's strong business position as one of the largestproducers and exporters of beef and with prominent positions inthe poultry and pork industries worldwide.

Key Rating Drivers

Rating Watch StatusMarfrig's ratings were placed on Ratings Watch Negative in Juneof 2013, reflecting negative free cash flow and higher leverage,and prior to the announced sale of assets to JBS S.A. Shortlythereafter, Marfrig announced the sale certain of Seara assets toJBS S.A. (JBS) for the assumption of BRL5.85 billion (US$2.9billion) of Marfrig's bank debt with maturities between 2013 and2017; the transaction is subject to the approval of CADE, theBrazilian antitrust authority.

The asset sale is positive for Marfrig Alimento S.A.'s (Marfrig)and it is likely that the closing of the transaction would resultin the stabilization of Marfrig's ratings at the 'B' category andthe removal of its ratings from Rating Watch Negative. Pro formafor the sale, Marfrig's net debt-to-EBITDA ratio should declineto about 3.5x from its current level of 5.1x as of June 30, 2013.While Marfrig will have lower leverage, it would also havesignificantly less product diversification in Brazil. As aresult, Marfrig's exposure to more volatile protein businesswould increase.

Marfrig purchased Seara from Cargill in 2009 for US$900 million.Marfrig had more than tripled Seara's business, from US$1.7billion in revenues and US$76 million of EBITDA in 2009 to aboutUS$4.5 billion in revenue and estimated pro forma EBITDA ofUS$300 million in 2012. The addition of some assets from BRF S.A.(BRF) in the middle of 2012 was also important to this growth, asit more than doubled Seara's production capacity.

Significant Leverage Decline Post Asset SaleAs of June 30, 2013 LTM, Marfrig's total debt reached BRL11.2billion; including BRL3 billion of Seara's debt that should betransferred to JBS, as a result of the asset sales. Disregardingthis amount, pro forma net debt-to-EBITDA was 3.4x, a significantimprovement from 4.9x reported in 2012.

Concerns regarding leverage remain, as the company has thechallenge to improve its cash flow generation in order to keepleverage in line with the 'B' category. Marfrig's ability tomaintain a sustainable capital structure will depend on itsability to start generating positive free cash flow, which inturn hinges upon the company's success in executing its strategyto realign business priorities, reduce costs, improve logistics,and establish itself as a viable niche player in the segments itoperates.

Operating Results Remain ChallengedMarfrig operating results remain challenged. As of June 30, 2013LTM, consolidated net revenues declined to BRL21.5 billion, fromBRL23.7 billion, in 2012, as a result of the disposal of Searaand Zenda's assets in June 2013. The remaining businessespresented increasing revenues in the second quarter. However,despite the increasing revenues of the remaining business, theEBITDA of these operations during the second quarter of the yearwas negatively impacted by the pricing environment of the beefsegment in Brazil, Argentina and Uruguay. The beef businessrepresents about 38% of Marfrig's net revenues.

The high cost of cattle in the region, coupled with thechallenges to push higher beef prices through to the consumer,resulted in a decline of Marfrig's beef EBITDA to BRL145 millionin the 2Q2013, compared with BRL225 million in the 2Q2012. Inadditional to the revenue and EBITDA contraction, cash flowgeneration has been pressured by higher working capital needs. Asof June 30, 2013 LTM, cash flow from operation (CFFO) wasnegative at BRL280 million, impacted by BRL1.1 billion of workingcapital needs. These results combined with capex of BRL747billion, resulted in negative FCF of BRL1 billion during theperiod. Marfrig's negative FCF over the last year has resulted incontinued high leverage on its balance sheet.

Business Portfolio Will ChangeWhile Marfrig's divestiture will lower leverage, the transactionwill somewhat reduce the company's diversification. Marfrig'sremaining business portfolio includes strong brands andperformers such as Key Stone, Moy Park in the UK and itsBrazilian beef business. The company acquired some of thoseassets in a series of acquisitions that resulted in both productand geographic diversification which is positive for the ratingsbut also led to highly levered capital structure. Marfrig'sstrategy for managing and growing its remaining businesses in aprofitable fashion are key factors to the company's long-termcredit quality.

Rating Sensitivities

Marfrig's inability to start generating positive FCF andconsequently keep leverage below 4.0x on a sustainable basiscould result in a downgrade. An upgrade of Marfrig's ratings isover the medium term is plausible should the company and newmanagement be able to overcome the several challenges facing thecompany on both a financial and operational level. The company'scapital structure is expected to continue to be highly leveragedafter asset sales.

The ratings are informed by 'Fitch Parent and Subsidiary LinkageCriteria'.

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PBG SA: Wisniewski's Stake Down to 23.5% Following Creditor Deal----------------------------------------------------------------Marta Waldoch and Maciej Martewicz at Bloomberg News report thatPBG SA, which on Tuesday approved a draft offer for itscreditors, said in a regulatory statement Jerzy Wisniewski'sstake in the company will drop to 23.5% after deal from 36.8%.

According to Bloomberg, other shareholders will hold a 1.46%stake in the company after the deal.

PBG, Bloomberg says, offers to pay back 8%-20% of liabilities ininstallments. The company will cover the liabilities of"significant" owners in shares, not cash, Bloomberg notes.

PBG SA is Poland's third largest builder. PBG secured courtbankruptcy protection for debt restructuring proceedings in June2012, after signing a stand-down agreement with its bankingcreditors in May.

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* ROMANIA: More Than 9K Firms Go Insolvent in First 7Mos. of 2013-----------------------------------------------------------------Irina Popescu at Romania-Insider.com reports that a total of9,655 companies in Romania went insolvent in the first sevenmonths of this year, a year-on-year decrease of 5.4 percent,according to recent data from the National Trade Registry (ONRC).

The number is at least 500 less than the same period last yearwhen more than 10,200 companies went bankrupt between January andJuly, Romania-Insider.com discloses.

The report says Romania's Dolj county recorded the highest numberof insolvencies in the first seven months of this year -- 934, ayear-on-year increase of 27.4 percent.

Next, following closely, was Brasov county with 933 insolventcompanies -- up 48 percent compared to the same period last yearand Bucharest with 712 insolvency cases, down 6.9 percentcompared to January-July 2012, Romania-Insider.com relays.

Romania-Insider.com adds that Calarasi county recorded the lowestnumber of insolvency cases in the first seven months, namely 23,followed by Harghita county, which had 33, and Tulcea county with43 insolvent companies.

Most of the companies facing financial problems were those in thetrade sector, followed by companies in manufacturing andconstruction, Romania-Insider.com reports.

ABERDEEN ASSET: Fined GBP7.2MM For Putting Investor Money at Risk-----------------------------------------------------------------Kyle Caldwell at The Telegraph reports that the Financial ConductAuthority (FCA) fined Aberdeen Asset Managers and Aberdeen FundManagement GBP7.2 million for insufficiently protecting clientmoney with third party banks between September 2008 andAugust 2011.

The Telegraph relates that the FCA said a total of GBP685 millionwas put at risk.

According to the report, the FCA's client money rules state if afirm falls on hard times and becomes insolvent, the money held onbehalf of its clients must be clearly identified, protected andreturned as soon as possible.

However, Aberdeen incorrectly determined that the money involvedwas not subject to these rules, the report relays. It failed toobtain the correct documentation from third party banks whensetting up the affected accounts. There appears to have beenuncertainty over which clients were protected and by how much.

These failures put clients at risk of delays in having theirmoney returned if Aberdeen became insolvent, adds The Telegraph.

CO-OPERATIVE BANK: Bondholders Say New Rules May Ease Burden------------------------------------------------------------John Glover and Howard Mustoe at Bloomberg News report thatCo-operative Bank Plc bondholders say new legislation designed tomake holding companies more responsible for their financialbusinesses could save them from being forced to bear the brunt ofthe lender's bailout.

Under rules that came into force in April, the PrudentialRegulatory Authority can direct a parent company to raise newcapital, reorganize its financial unit and fire executives,Mark Taber, a Bristol, England-based organizer of a group ofbondholders who wants the PRA to review the proposed rescue, ascited by Bloomberg, said. Mr. Taber said that could weaken thethreat by Euan Sutherland, chief executive officer of parentcompany Co-operative Group Ltd. to wind up the lender if bondinvestors refuse to accept losses, Bloomberg relates.

Co-op Bank must raise GBP1.5 billion (US$2.3 billion) to plug acapital hole after losses incurred following its acquisition ofBritannia Building Society in 2009, Bloomberg discloses. Thelender plans to raise GBP500 million by exchanging subordinateddebt for equity and another GBP500 million from the sale ofsenior debt issued by the member-owned parent company, which hasinterests from retail to funeral homes, Bloomberg says.Co-operative Group plans to put in another GBP500 million fromthe sale of insurance interests, Bloomberg notes.

"The potential brand damage for putting the bank intoadministration would be pretty cataclysmic," Bloomberg quotesGary Greenwood, a banking analyst at Shore Capital in Liverpool,England, as saying in a telephone interview on Tuesday.

Co-op Bank is a public limited company owned through Co-OperativeBanking Group Ltd., a unit of Co-Operative Group Ltd., Bloombergdiscloses. The parent also owns its insurance businesses throughthe Banking Group. It sold Co-Operative Insurance Society Ltd.,its asset management and life insurance business, this year andnow owns a general insurer alongside the bank, Bloombergrecounts.

The PRA's powers "are not applicable to the Co-Operative Groupfollowing the completion of the disposal of CIS on July 31,"Manchester-based Co-op, as cited by Bloomberg, said in ane-mailed statement on Tuesday, declining to say why the rulesdon't apply.

According to a policy document published by the Bank of Englandin April, "in general, the PRA would consider action to be mosteffective when taken in relation to the ultimate parentundertaking at the head of the ownership chain, as that isusually where most of the power to direct and control the groupresides," Bloomberg discloses.

The regulator's powers are "very broad," Bloomberg quotes StevenMcEwan, a partner at Hogan Lovells International LLP in London,as saying in a telephone interview on Tuesday. "The practicalquestion would be whether they will engage with the parentcompany taking into account what is realistic, or use the powerto impose onerous requirements that the parent company cannotrealistically achieve."

"The PRA has the power to force them to put the money down,"Mr. Taber, who coordinated a bondholder campaign againstindividual investors being forced to take losses following therestructuring of Bank of Ireland, as cited by Bloomberg, said.

Co-op Bank -- part of the mutually owned food-to-funeralsconglomerate Co-operative Group -- traces its history back to1872. The bank gained prominence for specializing in ethicalinvestment. It refuses to lend to companies that test theirproducts on animals, and its headquarters in Manchester ispowered by rapeseed oil grown on Co-operative Group farms.

Founded in 1863, the Co-op Group has more than six millionmembers, employs more than 100,000 people, and has turnover ofmore than GBP13 billion.

* * *

As reported by the Troubled Company Reporter-Europe on May 13,2013, Moody's Investors Service downgraded the deposit and seniordebt ratings of Co-operative Bank plc to Ba3/Not Prime fromA3/Prime 2, following its lowering of the bank's baseline creditassessment (BCA) to b1 from baa1. The equivalent standalone bankfinancial strength rating (BFSR) is now E+ from C- previously.

NEWGATE CONCISE: Bailey Ahmad Appointed as Liquidators------------------------------------------------------Hannah Jordan at PrintWeek reports that South East Londoncommercial printer Newgate Concise has appointed liquidatorsBailey Ahmad after suddenly closing its doors in mid-August.

PrintWeek relates that a meeting of creditors took place onAugust 30 with the liquidator's report to be published within28 days.

One of the main factors behind the firm's closure is understoodto be a forced move after the firm's landlord's decided to notrenew the company's lease, according to the report.

PrintWeek says the company tried to find alternative premises,but lack of suitable premises nearby and associated relocationcosts, such as dilapidation fees on the old premises andupgrading new premises, led the directors to close the businessand place it in voluntary liquidation.

The business, which was initially shortlisted in the PrintWeekAwards 2013 but subsequently withdrawn, was owned by holdingcompany Polarview.

Originally founded as Newgate Press in 1946, the litho printersplit into two with Concise Cover Printers specialising inpaperback book cover printing. The two businesses amalgamated in2004 to become Newgate Concise, which until last month employedaround 12 members of staff.

ORTAK: Launches Autumn-Winter Collection Despite Administration---------------------------------------------------------------Peter Ranscombe at The Scotsman reports that model Tara Nowy onTuesday launched the autumn-winter collection from Ortak, despitethe company still being in administration.

The firm fell into the hands of administrators from accountancyfirm BDO in March, amid soaring gold and silver prices and theeffect of the recession on high street shopping, The Scotsmanrelates. Three stores have been closed -- in Edinburgh, Glasgowand Stirling -- and 40 jobs have been axed, taking its headcountdown to 127, The Scotsman discloses.

"We have been overwhelmed by support for Ortak over the past fewmonths and the clear affection that many customers have for thebrand, Alistair Gray," The Scotsman quotes managing director atOrtak as saying. "Investment in new designs has always been thelifeblood of Ortak and we are delighted to launch our newcollections despite this difficult time."

According to the Scotsman, James Stephen, a partner at BDO, said:"Following the restructuring implemented, Ortak now has aprofitable business model that would be attractive to investorsand could be enhanced by further planning."

Ortak is an Orkney-based jeweller.

STANBRIDGE EARLS: Taps Smith and Williamson as Administrators-------------------------------------------------------------BBC News reports that Stanbridge Earls School, a Hampshire schoolcriticised for its handling of a pupil's rape claim, has calledin administrators.

The move follows an announcement last month that Stanbridge EarlsSchool near Romsey was to close after not enough pupilsregistered for the new term, the report relays.

Insolvency firm Smith and Williamson LLP are to be appointedadministrators of the scandal-hit school, BBC Says.

BBC News relates that in a letter to parents on behalf of theboard of trustees, David Du Croz, called the move a "very sadoutcome." He added that it was a "tragic end to a once greatschool," BBC reports.

According to the report, two proposed takeovers of the schoolrecently fell through -- one amid concerns over pupil numbersafter a tribunal in January found the school failed to protect a"vulnerable" pupil.

SUPERGLASS: Launches Search for New Chief Financial Officer-----------------------------------------------------------Gareth Mackie at The Scotsman reports that Superglass yesterdaylaunched the search for a new chief financial officer after AllanClow said he was resigning "for personal reasons" after a year inthe role.

Mr. Clow, who was previously finance director at the interiorsdivision of Dalgety Bay-based shopfitter Havelock Europa, joinedSuperglass on August 28, 2012, and his departure date is yet tobe decided, The Scotsman discloses.

The company moved to the junior Alternative Investment Market inJune after completing a make-or-break GBP12.2 million fundraisingto cuts its debts, The Scotsman recounts. The refinancing dealalso saw lender Clydesdale Bank convert some of its debt intoequity, The Scotsman relates.

According to The Scotsman, Superglass said yesterday that tradingin the year to end of August has been in line with Cityforecasts, and it ended the year with a better-than-expected netcash balance of GBP5.5 million.

However, sales volumes were described as "volatile", with "verylow" take-up of insulation work under the UK government's GreenDeal scheme, The Scotsman notes.

Superglass is due to publish its annual results on November 19,The Scotsman states.

Monday's edition of the TCR delivers a list of indicative pricesfor bond issues that reportedly trade well below par. Prices areobtained by TCR editors from a variety of outside sources duringthe prior week we think are reliable. Those sources may not,however, be complete or accurate. The Monday Bond Pricing tableis compiled on the Friday prior to publication. Prices reportedare not intended to reflect actual trades. Prices for actualtrades are probably different. Our objective is to shareinformation, not make markets in publicly traded securities.Nothing in the TCR constitutes an offer or solicitation to buy orsell any security of any kind. It is likely that some entityaffiliated with a TCR editor holds some position in the issuers'public debt and equity securities about which we report.

Each Tuesday edition of the TCR contains a list of companies withinsolvent balance sheets whose shares trade higher than US$3 pershare in public markets. At first glance, this list may looklike the definitive compilation of stocks that are ideal to sellshort. Don't be fooled. Assets, for example, reported athistorical cost net of depreciation may understate the true valueof a firm's assets. A company may establish reserves on itsbalance sheet for liabilities that may never materialize. Theprices at which equity securities trade in public market aredetermined by more than a balance sheet solvency test.

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